Al Gordon reveals why most real estate investors fail before they even start. He shares his own mistakes from his early investing days and exposes hidden traps that can destroy investment deals.
Al discusses his experience with uninsurable electrical boxes and aluminum wiring issues that catch unprepared investors off guard. He admits his own approach of reading books and taking online courses led to mediocre results.
What You'll Discover
Why Zinsco, Stablack, and Federal Pacific electrical boxes can be uninsurable
How Al's initial education approach led to wrong investment decisions
The importance of proper education before making your first investment
Key Timestamps
03:47 - Electrical Box Warning - Al introduces Zinsco, Stablack, and Federal Pacific as uninsurable electrical boxes
07:18 - Real Estate as Business - Al warns that treating real estate investing as a hobby will eat your lunch
08:10 - Al's Education Mistakes - How Al initially thought education was just reading books and online courses
18:30 - Finding Better Education - Al explains how he eventually sought proper structured education
24:22 - Building Your Team - Al discusses finding real estate agents, attorneys, accountants, and contractors
FAQs
What electrical systems should investors be concerned about?
According to the transcript, Zinsco, Stablack, and Federal Pacific electrical boxes are uninsurable by insurance companies. Aluminum wiring can also cause insurance denial. These prevent you from getting required property insurance.
What education mistakes did Al make early on?
Al admits he thought education was as simple as reading a couple books and buying online courses for maybe 100-200 bucks. He got advice from military colleagues and neighbors who weren't real estate professionals, leading to mediocre results.
What's the difference between single-family and multifamily investing?
Al states that single-family properties are not considered commercial real estate, while multifamily properties are commercial assets. This creates differences in valuation, financing, and business operations. Multifamily offers economies of scale and higher cash flows.
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